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12/15/2009

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Well said Laura (and cool cartoon too)!

The current executive compensation schema is broken, and while the issues and potential solutions are complicated, I do know one thing: the government understands them far less than most of us compensation professionals do.

It's already getting a bit hot in the executive compensation kitchen, and boards and companies are starting to "get it" and make some positive changes (reducing ridiculous perks, excessive parachutes, etc.). It will likely take a few more years of increasing heat to squeeze more excesses out of the system, but it's starting to happen.

Also, see the comments made very recently by GE's CEO about executive pay. He's arguing for closing the gap between non-executive and executive compensation, and in being more reasonable and transparent in setting executive pay.

Thank you, Doug. I laughed out loud when I ran across the cartoon. Good point about the government, especially now that it turns out (per Becky's post) they're as prone to inflate pay as the private sector. No lifetime poodle walking benefits yet but it sounds like they're learning fast.

Please don't give credence to the USA Today article about federal pay inflation. USA Today made errors that would make any compensation professional cringe! See my response to Becky's article.

Thanks for commenting and clarifying, Paul.

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